EBay has decided to ditch placing mobile ads inside of its apps. They say that the revenue generated from the ads is "not worth it," especially when they consider how it affects the user experience. "We aren't happy with the user experience and we don't need the money," Devin Wenig, eBay's president of global marketplaces, said.
Dropping ads altogether is fine when you have an alternative source of income available. EBay makes the lion's share of their money by selling stuff online. Free apps and services don't have this same revenue stream and have no other way of monetizing but through advertisements.
Clearly, the current version of mobile advertising isn't working. However, for the time being, it's about all that some apps have and they will have to continue using it until a better solution comes along. Thankfully for eBay, they have plenty of other income coming in. Ebay expects to conduct more than $10 billion from its mobile apps next year.